Money-Related Questions To Ask Yourself As A First-Time Home Buyer

Posted on: 27 February 2017


When you are ready to get serious about buying your first home, you may be extremely excited and maybe even a little idealistic. After all, having a lovely home is a big part of the fulfillment of the American dream. Here are some essential questions you should ask yourself as a first-time home buyer before you make an offer on a house. 

Ask Yourself: Do You Have a Sufficient Down Payment for the Home You Want?

If you plan to attain a mortgage, you may not have put a lot of thought into the down payment for the home, but nearly any lender will expect you to have a sufficient down payment on the house. Oftentimes the down payment you need on the house may be 3.5 percent of the cost of the house, and it may sometimes be more than that. Take the time to save for a down payment in addition to closing costs and other initial expenses that come with buying a home.

Ask Yourself: Are You Prepared to Meet the Unexpected Costs of Home Ownership?

You likely know that you must plan to meet monthly mortgage payments as well as home insurance if you buy a house. However, many new home owners make the big mistake of not planning to meet the unexpected costs of home ownership. When you rent a home, you can just call the landlord when something goes wrong with the electricity, plumbing, or other aspect of the home. When you have your own home, however, it is all on you, and a home owner can easily wind up with thousands of dollars of unexpected costs when something major goes wrong in the home.

Ask Yourself: Will the Home You Invest in Meet Your Long-Term Goals?

Before investing in a home, you need to seriously assess whether it can help you meet your long-term goals. If you don't plan to stay in an area on a long-term basis, you may evaluate whether it would be a good rental property that you could lease if you are unable to sell it. If you plan to have a family in the near future, you may want to ensure that the house has enough bedrooms to allow all your future children to have their own room. Whatever your long-term goals are for a house, make sure the home you buy will be able to meet them.

Finally, keep in mind that these are a few questions to get you started on examining whether you are ready for making that first offer on a home. Assess your unique situation and talk to your real estate agent about any questions or concerns you have about the home-buying process. By carefully assessing your financial health as you move towards home ownership, you can empower yourself to make the best choices to ensure successful home ownership for years to come.